Shorting is a normal market operation, in Australia it is already regulated to an extent in that it isn't as easy as buying shares for instance.
In the end the share price will still reflect what the market wants.
At this point in time, simple number crunching suggests this company is fair value at around $1-3 where exactly in that range is negotiated constantly by the market weighing up the risks of the company and the world at large. I truly believe $4 is a premium, $1 a bargain.
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